I’m a former employee of a company that has just been acquired. I left the company around 5 months before the announcement was made.

ESOP shares are historically paid out at the appraised value for the year of termination. Since the appraised value is not known until the close of the financial year, the former employee would have to wait until after the close of the financial year to receive their funds.
In the past, distributions have been made at least 6 months after the close of the financial year. I was expecting my ESOP account to be transferred to me in March/April of 2008.

As I left 1 month into the new financial year, I would normally have to wait until mid 2007 before knowing the appraised value for the stock I own. Since the company has been purchased by a publicly traded company, this appraisal process will no longer take place.

Should I expect to receive the buyout price for the ESOP shares? How are former employees who left in the plan year normally handled? Any insight would be appreciated.

Unless your plan exchanged the terminated participant shares for cash you should expect to receive the buyout price for the ESOP shares.

Generally, former employees who still have balances left in the plan during the buyout normally receive the buyout price for the shares. These participants may or may not be granted 100% vesting depending on the plan document and attorney involved.

For additional informaiton please see the thread below.

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